The economist Haivanjoe NG Cortiñas, when evaluating the 2021 General State Budget Bill , based on the intention of the central government, considered that the authorities missed the opportunity to formulate a zero-based budget, aligned with economic recovery and control of the health crisis due to Covid-19 and not in budgetary changes, based on counterproductive tax patches and more of the same at the level of spending.
NG Cortiñas defined as disconnected from the structure of the budget and the situation, the three criteria presented by the referred 2021 project. The first, relative to the fact that the budget is not a personal adventure , but a conception of development; the second, to the fact that the financing policy has a responsible nature , by reducing the main risks, such as the profile in foreign currency and, third, to recover the collection sufficiency and increase the fiscal revenues that allow the development of spending interventions.
“The 2021 budget continues to present the same ailments and shortcomings of the past, showing that there is no substantive change in budget policy. The foreseeable financial result presents a greater deficit, the Gross Financing Needs (NBF), resume their upward race, public debt maintains its increasing trend and the different classifications of public spending remain and in some cases worsen, “said the economist.
He also argued that the new tax system that is to be approved with the 2021 budget , especially with tax patches, does not correspond to the new normal that should guide economic policy at the present juncture, which implies being aligned with the post-economic recovery. coronavirus, endowed with non-traditional expansive fiscal and monetary instruments.
NG Cortiñas argued that the fact of trying to include new taxes for 2021 does not consider the multiplier of the short-term tax, which does not promote economic growth when the tax burden rises and less in times of economic contraction like the one the country is going through and, on the contrary, national and international evidence indicates that when taxes are reduced, it promotes economic recovery.